Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

Cigarettes in Malaysia

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Executive Summary

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

PROSPECTS

Price rises and wider availability boost sales of economy cigarettes

In 2018, cigarettes witnessed a wider range of different variants of economy products, along with wider availability. This encouraged an increasing number of smokers to trade down to cheaper options, with the share of the economy segment seeing a strong increase.

Retail volume sales of cigarettes continued to decline in 2018, mainly driven by the increasing penetration of illicit trade. Due to the higher cost of living and weak economic performance, many smokers turned to economy brands or illicit sources.

Government efforts and alternatives to cigarettes set to reduce smoking prevalence

Cigarettes is expected to see a strong decline in smoking prevalence over the forecast period. The actual number of smokers is also expected to decline from 2019.

COMPETITIVE LANDSCAPE

British American Tobacco maintains its lead despite share decline for Dunhill

British American Tobacco (Malaysia) maintained its lead in cigarettes in retail volume terms in 2018. However, it lost share every year from 2015, due mainly to declining sales of Dunhill.

Point of sale displays in stores to interest consumers

Philip Morris (Malaysia) is using unique packaging designs and displays to attract consumers’ interest at points of sale. For instance, Marlboro was displayed in a light box in 2018, whilst L&M used shelf talkers.

SST leads to a price war, which is ended by the government

The new Sales and Service Tax (SST) tax system was implemented in Malaysia in September 2018, but there was confusion in terms of cigarette pricing. Prices initially rose after the 10% SST was implemented, as tobacco tax rises should be fully passed on to consumers under regulations enforced by the Ministry of Health.

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